The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into force in May 2022, is arguably the most significant bilateral trade deal India has signed in a decade. For Gulf-based importers, it represents a genuine, quantifiable cost advantage on a wide range of Indian goods.
What’s Covered
The CEPA covers over 10,000 tariff lines. Indian exporters get preferential access to the UAE market, and UAE importers benefit from lower or zero duties on Indian goods. Key beneficiary categories include: gold and jewellery, textiles and apparel, engineering goods, pharmaceuticals, food products including spices, and agricultural commodities.
Certificate of Origin: The Critical Document
To claim CEPA preferential rates at UAE customs, your shipment must be accompanied by a Certificate of Origin (Form CEPA) issued by the Export Inspection Council or authorized chambers in India. Ensure your supplier is familiar with this requirement — many smaller exporters still need guidance on obtaining the correct CoO format.
Rules of Origin: Watch the Fine Print
Products must meet the Rules of Origin criteria — typically a minimum 30–40% value addition in India. Pure trading (buying from a third country and re-exporting through India) does not qualify. Your supplier’s production must genuinely originate in India.
Practical Impact
On textiles, duty savings of 5–12 percentage points are now available to UAE importers. On food products and spices, reductions of 2–8% apply. For high-volume importers, these numbers translate to significant annual savings and improved price competitiveness in the UAE market. The India-GCC FTA currently being negotiated is expected to extend similar benefits across Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman.
